Internet service provider EarthLink confirmed an announcement that Korean operator SK Telecom will invest an additional $270 million in Helio, the struggling MVNO the two firms jointly launched in mid-2006. In addition, EarthLink and SK Telecom are currently in negotiations to amend their existing agreements to reflect the new investment and how it impacts Helio's future governance--the amendments are not yet completed, and the firms said additional further details will not be released until the terms are finalized. Helio ended August with 130,000 subscribers, with a subscriber base of 200,000 to 250,000 expected by year end--despite revenue forecasts of $140 million to $170 million, the venture anticipates full-year net losses of $340 million to $360 million.
For more on the Helio funding:
- read this release [1]
Related articles:
Helio [2]'s struggles show risks of serving niche markets
Helio [3] squashes rumors of massive layoffs
Helio [4] to succeed where Mobile ESPN failed?
Helio [5] adds online content, feels the Heat
Helio [6] reveals plans, partners for mobile gaming
Links:
[1] http://www.fiercewireless.com/press-releases/earthlink-confirms-preliminary-agreement-sk-telecom-fund-270-million-helio-joint-vent
[2] http://money.cnn.com/news/newsfeeds/articles/djf500/200709211405DOWJONESDJONLINE000679_FORTUNE5.htm
[3] http://www.fiercemobilecontent.com/story/helio-squashes-rumors-massive-layoffs/2007-08-31
[4] http://www.fiercemobilecontent.com/story/helio-to-succeed-where-mobile-espn-failed/2006-10-18
[5] http://www.fiercemobilecontent.com/story/helio-adds-online-content-feels-the-heat/2007-03-01
[6] http://www.fiercemobilecontent.com/story/helio-reveals-plans-partners-for-mobile-gaming/2006-04-26